🌍Newsletter - August 2024
Welcome to the 9th edition of the AFI Ventures’ newsletter.
As a reminder, AFI Ventures (fund managed by Ventech) is an impact VC fund that invests in pre-seed/seed startups with a strong environmental and social ambition, producing a systemic change. We invest once a month in France & Europe tickets ranging from €250K to €500K.
Each month in this newsletter, you'll find a summary of 2 articles on the impact ecosystem that have caught our attention, fundraisings realised by impact start-ups in France, and news from our portfolio. 💚
👀 What Caught our eye
Greening Airports
Airports contribute nearly 5% of global emissions. Experts emphasized the urgent need to decarbonize airports. Edward Arkwright from ADP Group outlined three key strategies:
✈️Reduce Unnecessary Travel
Managing Growing Passenger Numbers
Technologies like lidar can manage passenger movement efficiently, reducing congestion and emissions.
🧳 Alltheway.io's off-airport luggage check-in services can cut emissions and manage footfall, enhancing operational efficiency.
Changing Mindsets and Regulations
Consumers are increasingly willing to pay more to reduce carbon footprints.
Intermodal Travel: Integrating planes and trains will transform airports into comprehensive mobility hubs.
Adopt Sustainable Energy Solutions 🌿
There's a rapidly growing demand for Sustainable Aviation Fuel, with Le Bourget Airport experiencing a 300% increase in one year to meet European decarbonization targets:
Beyond Aero is pioneering hydrogen-electric planes, aiming for a 2030 launch. The startup completed the first manned hydrogen flight in 2024, marking a significant advancement in sustainable aviation.
Improve Infrastructure Efficiency
Alan Kingsley-Dobson from Aerovolt predicted sustainable airports are inevitable:
New infrastructure must adapt to future needs, such as transitioning from gas to liquid hydrogen.
📊 Estuaire, one of AFI’s portfolio companies, leverages advanced data analytics to help airlines, airports, and financiers reduce CO2 and non-CO2 emissions.
To achieve sustainable aviation goals, collaboration between airports and startups is essential:
Startups must future-proof their technologies for long-term viability.
Smaller regional airports are more open to adopting new technologies, addressing local concerns and providing valuable testbeds.
The incredible inefficiency of the fossil energy system
Findings show that almost two third of primary energy is wasted in production, transportation, and use. This inefficiency results in a loss of over $4.6 trillion per year, equating to nearly 5% of global GDP.
Energy Production Losses:
Main drivers include extraction, fuel processing, and power generation.
Power generation losses: 126 exajoule(EJ)/year, valued at $540 billion.
Other losses: 51 EJ/year from extraction and processing, worth $300 billion.
Energy Transportation Losses:
19 EJ/year is lost, costing $200 billion. Losses occur in ships, pipes, and wires.
Shipping losses: $42 billion for transporting fossil fuels, $8 billion for LNG transport. Pipe losses: $30 billion/year.
Energy Use Losses:
Major areas: heat production, work production, and light generation.
Heat losses: 65 EJ/year, mainly from biomass in low-income countries and fossil fuels.
Work losses: 94 EJ/year, mostly from oil combustion in ICEs, resulting in $2 trillion wasted annually.
Fossil fuels previously outcompeted biomass and other fuels due to efficiency.
Renewables, localization, and electrification are driving new efficiency gains.
Efficiency Gains and Technology:
Global system energy efficiency has grown by 1.5% per year since 2000.
Renewables like wind and solar have minimal losses, unlike fossil fuels. (Solteo, Enrise, Ensol or Zilo are all working on accelerating solar adoption and deployment at scale.
Localization reduces transportation energy losses. Electrification improves efficiency in heating and transportation.
Startups like Propellane or Airthium are working on electrifying industrial processes.
Beev, Pelikan, Kate and Bib are examples of startups looking to accelerate the transition towards clean mobility.
Impacts of Clean Technologies:
Heat pumps, electric vehicles, and other technologies are more efficient than their fossil counterparts.
As these technologies grow, the energy system will become more efficient.
Adoption of clean technologies creates opportunities for further efficiency improvements.
🍃 AFI Ventures - Main Highlights
AFI Ventures’ Public Investments in July
Alpagga 🇫🇷 - (€3.5M/Ring Capital, All Iron, FJ Labs, DH Ventures) Offers a secondhand equipment marketplace for foodservice professionals.
Investment rationale:
Geoffrey & Bordan have a successful track record of building and exiting a food tech startup, Mokaya.
Alpagga already achieved significant traction.
The AGEC law and current economic conditions are creating strong demand for sustainable practices in the F&B industry creating a momentum for Alpagga.
The market is fragmented with very few digital leaders, creating a unique opportunity for market leadership.
Bohr Energie 🇫🇷 - (€4M/Founders Future, Varsity) An automated trader/aggregator platform for real-time optimization and market integration of renewable assets.
Investment rationale:
Bohr is already managing substantial renewable energy capacity.
€4bn Sales Potential: France’s 32.5 GW renewable energy market presents a significant opportunity.
With the support of the French Renewable Energies Acceleration Act, and over 8 approvals and certifications that Bohr has received the company has a solid framework.
The founders (Julien, Luis, and Julien), are ex-EDF Trading, and their founder-market fit brings industry knowledge and strategic vision to the company.
Recent News from our portfolio
Estuaire is one of the finalists of the Aerospace Xelerated Competition, and will be pitching at the Farnborough International Airshow - link
Optimize Construction is hiring a CEO's Right-Hand Intern and a Project Designer - link
Prolong has been named best startup in the Greentech Europe 2024 program - link and now expands into the DACH market - link
ERS - After 7 months of dedicated work, their V1.1 standard is more robust and better designed to meet market needs - link
Green Praxis has secured a significant funding boost from Bpifrance to drive forward its deep-tech research and development initiatives - link
Kompozite was identified in the recent mapping of carbon measurement solutions conducted by Hi Inov - Dentressangle - link
Sirona Technology have been selected to join the Google Startups for Sustainable Development program - link
Stokelp is partnering with NOUS anti-gaspi to offer a first range of products manufactured at Soléane from surplus raw materials - link
💰 Early-stage impact rounds in France
Apiday (€10M / Daphni, Aenu, Swen Capital Partners, Galion.exe, Speedinvest, Revent) provides a platform that helps companies collect all ESG data in one place, automate ESG reporting and certification processes, and collaborate with third parties to improve ESG scores or achieve specific ESG improvements.
Spotlight Medical (€6.2M / Kurma Partners, Heal Capital) develops advanced AI tests that improve treatment selection by leveraging decades of patient data.
D-ICE Engineering ( €6M / Swen Capital Partners, Mer Invest) deeptech advanced systems to improve performance, safety, and reduce emissions in the marine and shipping industries.
Syntetica (€4.2M / Bear Flag Capital, EQT Ventures, Volta Circle, Athletico Ventures, Better Angle, Pareto Holdings, Business Angels) uses chemical depolymerization to recycle all types of textile waste into nylon, including mixed textile materials.
Altrove (€3.7M / Contrarian Ventures, Emblem) designs and builds alternatives to the materials needed to achieve Net Zero.
Nous anti-gaspi (€3M / LITA.co, Business Angels) operates a French network of anti-waste food stores.
Incidences (€2.5M / Enerfip) produces green electricity from renewable resources in mainland and overseas territories.
Orus Energy (€2.2M / B2 Venture, Asterion Ventures, Ring Capital) provides AI-powered software to help commercial building operators activate and monetize their flexibility on the power grid, generating new revenue streams while reducing carbon emissions and accelerating the energy transition.
Blue Capsule Technology (€2M / CEA Investissement, Audacia, EREN Groupe, Exergon) designs an innovative modular reactor to provide high-quality industrial heat to industries.
Chiche ! (€2M / Demeter, Business Angels) produces lightly roasted seeds, crispy loops, and crunchy biscuits that are Nutriscore A or B, 100% natural, and all peas, beans, and other ingredients are grown in France.
Kiwee.care (€1.7M / Business Angels) offers a solution for payment, patient support, and amicable recovery of medical debts.
Up&Charge (€1.5M / Paris Business Angels, Business Angels) revolutionizes urban mobility by providing a cable-free, continuous electric charging solution for individuals and professionals.
Karbonpath (€1.3M / NC) software platform for managing ESG compliance and performance, from strategy to CSRD reporting.
Goud (€1M / Business Angel) offers a proactive health program that nurtures the physical and mental fitness of key company personnel.
Good Steps (€700K / Business Angels) provides a personalized impact strategy with the support of an expert CSR coach, enabling companies to easily measure the results of their actions and engage employees.
Archeon Medical (NC / NC) develops an intelligent medical ventilation device for CPR.
🤝 Our Team
Charles Fourault Partner - charles@afi.ventures
Mamadou Dembele Senior Associate - mamadou@afi.ventures
Constantin de Chaudenay Associate - constantin@afi.ventures
Juliette Lelievre Analyst - Juliette@afi.ventures
Don't hesitate to reach out if you're an impact entrepreneur or just interested in any of these topics. 🍃